Motor traders tighten belts as slow recovery begins
The global economic turmoil of recent years has not left motor traders untouched. Staveley Head’s specialist insurance policies for motor traders are one way to cut costs, but reducing the business management budget must still be a priority for all traders. While the US market saw some recovery in September, sales of new cars in the UK were below that of the same month in 2010 yet again, making September the 13th month in which car sales fell. Overall, the UK car market for 2011 will likely record a 5% drop on 2010. While previous predictions had hopefully put 2012′s sales at a rise of 5% The Society of Motor Manufacturers and Traders now believes that 2012′s sales will simply flat line.
This gloomy outlook for motor traders need not mean that all is lost; sales have new cars have halted totally and it means that traders must now be mindful of their expenses and overheads. One of the largest costs associated with motor trading is sourcing proper insurance – a cost which can be lessened through reduction of premiums. There are three ways in which this can bedone.
Perhaps the soundest advice for motor traders is to seek the opinion of a quality broker, like Staveley. Specialists are likely to be aware of the many options available to the motor trade, and will be in a better position to advise on the measures that are likely to save businesses money.
Motor traders should also think about how many they plan to sell in a year. If it will be less than three, private motor insurance may save a considerable amount simply by insuring one car and then switching the vehicle covered, each time one is sold. On the other hand, a fleet policy may also be appropriate in cases of low vehicle turnover but higher volume sales. Traders could also consider working from home and taking out insurance which covers their drive, along with a road risks policy, which in some cases would be an acceptable and cheaper option for smaller operations.
A final consideration is the level of indemnity required. All traders should think carefully about the actual value of the vehicles they plan to sell, as savings can be made by taking out insurance for their lowest value. For example, if most of the cars sold are valued at £15,000, it would be sensible to avoid paying for a policy which covers cars valued at £30,000.